The challenge of over-the-top content and services

Incumbent telecommunications operators providing services such as fixed and mobile telephony, broadband and pay-TV are being invaded by the online content industry and so-called over-the-top (OTT) applications, services and content. The best-known examples of these include Skype, WhatsApp, video games and film streaming (Netflix, Pandora). A key feature of this industry is that the Internet service supplier (ISP) is not involved in the distribution of OTT applications, services or content and does not earn any revenue from them. Yet OTT providers need Internet providers? infrastructure to reach their users, and they deliver products that generally compete with the ISPs? proprietary ones, such as voice, instant messaging and online TV.

Related Subject(s): Economic and Social Development